Monetizing the Investor Segment

Clint Greaves – CEO Real Estate Investar

PPW Bangkok - May 2015

Monetizing the investor segment

•  What we do

•  The size of the investor segment

•  What makes investors different

•  Segmenting and engaging with Investors

•  Monetization options

•  Transaction revenues

•  Questions & discussion

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What we do

Real Estate Investar operates a freemium model to build its audience for premium paid subscription and transactional services We provide real estate investors, on a subscription basis, with an integrated set of high quality online tools to make the best property investment decisions We partner with industry leaders in Australia and New Zealand to provide subscribers with all of the products and services they need throughout the property investment lifecycle

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Our growth approach

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Growth approach

Paying subscriptions

Referral revenues

Capture transaction revenue

Expand internationally

Overseas investors

Licensing to property portals

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4a

4b

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Profiling investors and sizing the opportunity

•  A recent survey of REI’s subscribers* showed they currently own an average of 3 investment properties and intend to own an average of 6 properties within 10 years (*based on 2,430 respondents)

•  ~20% of subscribers responding already own 5 or more properties

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Integrated Product Set Refined Over 8 Years

Investar Search & Development Search

Search engines that match investment search criteria with properties available on the Australian / NZ market. Multiple sources.

My Valuer Estimate of the current market price for a specific residential property. Leverages APM data and CoreLogic NZ.

My Research Suburb or regional reports covering sales trends, median prices, zoning, and comparable sales. Leverages APM data and CoreLogic NZ.

Property Analyser Forecasting (up to 10 years) the likely capital growth and cash flow for a particular investment property.

Portfolio Tracker & Xero Monitor investment property portfolio including income, loans, and equity position across one or multiple entities. Integrated with Xero and APM data.

Paid subscription products

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Australian real estate market

•  Total residential property market (ABS Census) •  7.76m dwellings

•  2.30m rental properties or 30% of total

•  Average sales per year •  400,000+ dwelling sales •  $200b+ by value

•  Monthly Investor loans (excluding refinancing) July 13 – June 14 •  $8.5b – $12.0b per month •  45% - 50% of total loans

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Australian property investors

•  2m+ current / aspiring property investors

•  At any time 10 - 15% actively looking to purchase property

•  98% of investors own 1 - 4 properties

•  In addition, these 2m+ investors all spend money on accounting, finance, property management, depreciation reports and other investor focused services

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33-35% 33-57%

20 -32%

33%

Source: www.nationmaster.com

17-31%

40%

Global rental stock share of housing market

These numbers are only going to get bigger

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Investors vs. home buyers

•  Financial outcome vs. lifestyle outcome

•  Search criteria different

•  Information requirements different

•  First hand knowledge of locations likely to be lower

•  Frequency of transacting potentially higher

10 Search Analyse Track Account

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•  34 filters •  Advanced data and analytics •  Watchlists, saved searches and

email alerts •  User profile & defaults •  Analyse 8,000 suburbs •  Globally unique

Investar Search

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Combine postcodes, suburbs, regions & states

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Search by radius or classification

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Automatic strategy & key word selection

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Members utilise 8 key strategies

1.  Capital growth

2.  Discount

3.  Renovation

4.  Positive cash flow

5.  Vendor finance

6.  Strata titling

7.  Subdividing

8.  Development

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Extensive property & suburb filters

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About the numbers, not the property

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Which property is the best investment?

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Users can set their own analysis rules

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Personalized loan & tax defaults

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Set expenses as % or dollar value

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Search integrates with Analyser

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Segmenting our audience

•  Capture information of free (130k) and paid (3k) subscriber activity

•  Exchange access to further services for additional customer information to enable further segmentation

•  Customise communications and offers based on segmentation

•  Sniper vs. shotgun

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Some of the things we track and measure

•  Report downloads

•  Blog and video views

•  Newsletter opens and clicks

•  Webinar registrations

•  Webinar attendance

•  Webinar interaction

•  Logins and usage of each service

•  Search volumes and types

•  No. of properties analysed and tracked

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•  Investor profile

•  Current ownership

•  Buying intentions

•  Type

•  Timeframe

•  Strategy

•  Location

•  Price

•  Capacity to transact

•  Barriers & challenges

Monetization •  User paid subscription services

•  Lower cost analysis and portfolio management services

•  Higher value portfolio building services

•  Referral revenues (or advertising) •  Finance

•  Accounting

•  Property management

•  Depreciation reports

•  Education

•  Insurance

•  Transactional revenues

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Capturing transaction revenues Levels of involvement:

1.  None - you can’t (or won’t) do it

2.  Generate leads on cost per qualified lead basis

3.  Generate leads on cost per closed transaction basis

4.  Manage and close out the transaction

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$500 - $1,500

$5,000 - $12,000

$20,000 +

$0

•  20,000+ listings from 200 projects Australia wide

•  Units and Houses •  Advanced data and

analytics •  Watchlist and comparison

tools

Development Search

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Project plans and documents

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Individual dwelling financials

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Easy comparison of KPI’s

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Stock availability – live reserve option

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Lead generation on cost of closed transaction

•  Partner Duplex offer in April:

•  2 EDM’s to our subscriber list

•  870 webinar registrations

•  440 webinar attendees

•  56 registrations of interest

•  17 current opportunities

•  ~10 closed transactions

•  Deeper knowledge of all 870 customers

•  Future transaction opportunities

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Summary

•  The investor segment is:

•  Large

•  Valuable

•  Different

•  Provide relevant search capabilities and information

•  Measure everything you can

•  Segment and communicate / interact based on what

you learn

•  Work out how best to monetize based on your audience

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Questions & discussion

Clint Greaves – CEO Real Estate Investar clint@realestateinvestar.com.au www.realestateinvestar.com.au